diff --git a/feature/settings/src/commonMain/composeResources/values/strings.xml b/feature/settings/src/commonMain/composeResources/values/strings.xml
index f4c2c024d..d619c56c9 100644
--- a/feature/settings/src/commonMain/composeResources/values/strings.xml
+++ b/feature/settings/src/commonMain/composeResources/values/strings.xml
@@ -83,8 +83,11 @@
     <string name="feature_settings_action_app_info">App Info</string>
     <string name="feature_settings_action_app_info_tip">Find the app version details</string>
 
-    <string name="feature_settings_action_logout">Logout</string>
-    <string name="feature_settings_action_logout_tip">Logout from all devices</string>
+    <string name="feature_settings_logout_now">Logout Now</string>
+    <string name="feature_settings_logout_title">Are You Sure You Want To Logout? </string>
+    <string name="feature_settings_logout_description">Logging out will end your current and all active sessions for security purposes. You’ll need to log in again to access your account.</string>
+    <string name="feature_settings_logout_message">I don’t want to logout?</string>
+    <string name="feature_settings_logout_action">Back to home</string>
 
     <string name="feature_settings_top_bar_title">Settings</string>
 
@@ -93,7 +96,6 @@
     <string name="feature_settings_internet_not_connected">No internet connection.</string>
     <string name="feature_settings_error_invalid_profile_image">Invalid profile image format.</string>
     <string name="feature_settings_customer_account_no">Customer Account: %1$s</string>
-    <string name="feature_settings_logout_message">Are you sure to logout?</string>
 
     <!-- About Screen -->
     <string name="feature_settings_about_topbar_title">About Us</string>
diff --git a/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/componenets/MifosLogoutDilaog.kt b/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/componenets/MifosLogoutDilaog.kt
new file mode 100644
index 000000000..613cf3c93
--- /dev/null
+++ b/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/componenets/MifosLogoutDilaog.kt
@@ -0,0 +1,149 @@
+/*
+ * Copyright 2025 Mifos Initiative
+ *
+ * This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at https://mozilla.org/MPL/2.0/.
+ *
+ * See https://github.com/openMF/mobile-mobile/blob/master/LICENSE.md
+ */
+package org.mifos.mobile.feature.settings.componenets
+
+import androidx.compose.foundation.clickable
+import androidx.compose.foundation.layout.Arrangement
+import androidx.compose.foundation.layout.Column
+import androidx.compose.foundation.layout.Row
+import androidx.compose.foundation.layout.fillMaxWidth
+import androidx.compose.foundation.layout.height
+import androidx.compose.material3.AlertDialog
+import androidx.compose.material3.MaterialTheme
+import androidx.compose.material3.Text
+import androidx.compose.runtime.Composable
+import androidx.compose.ui.Alignment
+import androidx.compose.ui.Modifier
+import androidx.compose.ui.graphics.Color
+import androidx.compose.ui.platform.testTag
+import mifos_mobile.feature.settings.generated.resources.Res
+import mifos_mobile.feature.settings.generated.resources.feature_settings_logout_action
+import mifos_mobile.feature.settings.generated.resources.feature_settings_logout_description
+import mifos_mobile.feature.settings.generated.resources.feature_settings_logout_message
+import mifos_mobile.feature.settings.generated.resources.feature_settings_logout_now
+import mifos_mobile.feature.settings.generated.resources.feature_settings_logout_title
+import org.jetbrains.compose.resources.StringResource
+import org.jetbrains.compose.resources.stringResource
+import org.jetbrains.compose.ui.tooling.preview.Preview
+import org.mifos.mobile.core.designsystem.component.MifosButton
+import org.mifos.mobile.core.designsystem.theme.AppColors
+import org.mifos.mobile.core.designsystem.theme.DesignToken
+import org.mifos.mobile.core.designsystem.theme.MifosTypography
+
+@Composable
+fun MifosLogoutDialog(
+    visibilityState: LogoutDialogState,
+): Unit = when (visibilityState) {
+    LogoutDialogState.Hidden -> Unit
+    is LogoutDialogState.Shown -> {
+        AlertDialog(
+            onDismissRequest = visibilityState.onDismiss,
+            confirmButton = {
+                Column(
+                    horizontalAlignment = Alignment.CenterHorizontally,
+                    verticalArrangement = Arrangement.spacedBy(
+                        space = DesignToken.spacing.medium,
+                        alignment = Alignment.CenterVertically,
+                    ),
+                ) {
+                    MifosButton(
+                        modifier = Modifier
+                            .fillMaxWidth()
+                            .height(DesignToken.sizes.buttonHeight),
+                        shape = DesignToken.shapes.medium,
+                        onClick = visibilityState.onLogout,
+                    ) {
+                        Text(
+                            text = stringResource(Res.string.feature_settings_logout_now),
+                            style = MifosTypography.titleMedium,
+                        )
+                    }
+
+                    Row(
+                        modifier = Modifier.fillMaxWidth(),
+                        verticalAlignment = Alignment.CenterVertically,
+                        horizontalArrangement = Arrangement.spacedBy(
+                            space = DesignToken.spacing.extraSmall,
+                            alignment = Alignment.CenterHorizontally,
+                        ),
+                    ) {
+                        Text(
+                            text = stringResource(visibilityState.message),
+                            style = MifosTypography.bodySmallEmphasized,
+                            color = MaterialTheme.colorScheme.secondary,
+                        )
+
+                        Text(
+                            text = stringResource(visibilityState.messageActionText),
+                            style = MifosTypography.bodySmallEmphasized,
+                            color = MaterialTheme.colorScheme.primary,
+                            modifier = Modifier.clickable {
+                                visibilityState.onNavigateToHome.invoke()
+                            },
+                        )
+                    }
+                }
+            },
+            title = {
+                Text(
+                    text = stringResource(visibilityState.title),
+                    style = MifosTypography.headlineSmallEmphasized,
+                    color = AppColors.customBlack,
+                    modifier = Modifier
+                        .fillMaxWidth()
+                        .testTag("AlertTitleText"),
+                )
+            },
+            text = {
+                Text(
+                    text = stringResource(visibilityState.description),
+                    style = MifosTypography.labelMediumEmphasized,
+                    color = MaterialTheme.colorScheme.secondary,
+                    modifier = Modifier
+                        .fillMaxWidth()
+                        .testTag("AlertContentText"),
+                )
+            },
+            containerColor = Color.White,
+            shape = DesignToken.shapes.medium,
+        )
+    }
+}
+
+sealed interface LogoutDialogState {
+
+    data object Hidden : LogoutDialogState
+
+    data class Shown(
+        val description: StringResource,
+        val title: StringResource,
+        val message: StringResource,
+        val messageActionText: StringResource,
+        val onLogout: () -> Unit,
+        val onNavigateToHome: () -> Unit,
+        val onDismiss: () -> Unit,
+    ) : LogoutDialogState
+}
+
+@Preview
+@Composable
+fun MifosLogoutDialogPreview() {
+    MifosLogoutDialog(
+        visibilityState = LogoutDialogState.Shown(
+            description = Res.string.feature_settings_logout_description,
+            title = Res.string.feature_settings_logout_title,
+            message = Res.string.feature_settings_logout_message,
+            messageActionText = Res.string.feature_settings_logout_action,
+            onLogout = { },
+            onNavigateToHome = { },
+            onDismiss = { },
+        ),
+    )
+}
diff --git a/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/settings/SettingsScreen.kt b/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/settings/SettingsScreen.kt
index ad1b7cd51..5ca1037e3 100644
--- a/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/settings/SettingsScreen.kt
+++ b/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/settings/SettingsScreen.kt
@@ -37,8 +37,8 @@ import androidx.compose.ui.unit.dp
 import androidx.lifecycle.compose.collectAsStateWithLifecycle
 import kotlinx.collections.immutable.ImmutableList
 import mifos_mobile.feature.settings.generated.resources.Res
-import mifos_mobile.feature.settings.generated.resources.feature_settings_action_logout
 import mifos_mobile.feature.settings.generated.resources.feature_settings_customer_account_no
+import mifos_mobile.feature.settings.generated.resources.feature_settings_logout_action
 import mifos_mobile.feature.settings.generated.resources.feature_settings_logout_message
 import mifos_mobile.feature.settings.generated.resources.feature_settings_top_bar_title
 import org.jetbrains.compose.resources.stringResource
@@ -53,6 +53,8 @@ import org.mifos.mobile.core.ui.component.MifosActionCard
 import org.mifos.mobile.core.ui.component.MifosProgressIndicator
 import org.mifos.mobile.core.ui.component.MifosUserImage
 import org.mifos.mobile.core.ui.utils.EventsEffect
+import org.mifos.mobile.feature.settings.componenets.LogoutDialogState
+import org.mifos.mobile.feature.settings.componenets.MifosLogoutDialog
 import org.mifos.mobile.feature.settings.componenets.SettingsItems
 
 @Composable
@@ -104,14 +106,17 @@ private fun SettingsDialog(
 
         SettingsState.DialogState.Loading -> MifosProgressIndicator()
 
-        SettingsState.DialogState.Logout -> {
-            MifosBasicDialog(
-                visibilityState = BasicDialogState.Shown(
-                    title = stringResource(Res.string.feature_settings_action_logout),
-                    message = stringResource(Res.string.feature_settings_logout_message),
+        is SettingsState.DialogState.Logout -> {
+            MifosLogoutDialog(
+                visibilityState = LogoutDialogState.Shown(
+                    description = state.dialogState.message,
+                    title = state.dialogState.title,
+                    message = Res.string.feature_settings_logout_message,
+                    messageActionText = Res.string.feature_settings_logout_action,
+                    onLogout = { onAction(SettingsAction.Logout) },
+                    onNavigateToHome = { onAction(SettingsAction.OnNavigateBack) },
+                    onDismiss = { onAction(SettingsAction.DismissDialog) },
                 ),
-                onDismissRequest = { onAction(SettingsAction.DismissDialog) },
-                onConfirm = { onAction(SettingsAction.Logout) },
             )
         }
 
diff --git a/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/settings/SettingsViewModel.kt b/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/settings/SettingsViewModel.kt
index 5c7dcba22..9ae5efd62 100644
--- a/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/settings/SettingsViewModel.kt
+++ b/feature/settings/src/commonMain/kotlin/org/mifos/mobile/feature/settings/settings/SettingsViewModel.kt
@@ -17,9 +17,12 @@ import kotlinx.coroutines.flow.update
 import kotlinx.coroutines.launch
 import mifos_mobile.feature.settings.generated.resources.Res
 import mifos_mobile.feature.settings.generated.resources.feature_settings_error_fetching_client
+import mifos_mobile.feature.settings.generated.resources.feature_settings_logout_description
+import mifos_mobile.feature.settings.generated.resources.feature_settings_logout_title
 import org.jetbrains.compose.resources.StringResource
 import org.mifos.mobile.core.common.DataState
 import org.mifos.mobile.core.data.repository.HomeRepository
+import org.mifos.mobile.core.data.repository.UserDataRepository
 import org.mifos.mobile.core.datastore.UserPreferencesRepository
 import org.mifos.mobile.core.model.entity.client.Client
 import org.mifos.mobile.core.ui.utils.BaseViewModel
@@ -44,7 +47,7 @@ import kotlin.io.encoding.ExperimentalEncodingApi
 internal class SettingsViewModel(
     private val homeRepositoryImpl: HomeRepository,
     private val userPreferencesRepositoryImpl: UserPreferencesRepository,
-//    private val userDataRepositoryImpl: UserDataRepository,
+    private val userDataRepositoryImpl: UserDataRepository,
 ) : BaseViewModel<SettingsState, SettingsEvents, SettingsAction>(
     initialState = run {
         SettingsState(
@@ -85,8 +88,8 @@ internal class SettingsViewModel(
         when (action) {
             SettingsAction.OnNavigateBack -> sendEvent(SettingsEvents.NavigateBack)
             SettingsAction.DismissDialog -> setDialogState(null)
-            SettingsAction.LogoutDialog -> setDialogState(SettingsState.DialogState.Logout)
-            SettingsAction.Logout -> handleLogout()
+            SettingsAction.LogoutDialog -> handleLogout()
+            SettingsAction.Logout -> handleInternalLogOut()
             is SettingsAction.Internal.ReceiveClientInfo -> handleClientResponse(action.dataState)
             is SettingsAction.Internal.ReceiveClientImage -> handleClientImageResponse(action.dataState)
             is SettingsAction.NavigateTo -> sendEvent(SettingsEvents.NavigateTo(action.item))
@@ -96,14 +99,42 @@ internal class SettingsViewModel(
     /**
      * Handles the user logout process.
      *
-     * This function would typically perform the following actions:
-     * 1. Clear user-specific data, such as authentication tokens and client information, from the repository.
-     * 2. Reset the application state to its initial, logged-out state.
-     * 3. Send a navigation event to redirect the user to the login or welcome screen.
+     * This function initiates the logout flow by updating the state to show a confirmation dialog.
+     * The actual logout logic (clearing data, navigating) is handled by a separate function
+     * after the user confirms the action.
+     *
+     * This function sets the dialog state to a [SettingsState.DialogState.Logout] with
+     * a title and a descriptive message to prompt user confirmation.
      */
     private fun handleLogout() {
+        mutableStateFlow.update {
+            it.copy(
+                dialogState = SettingsState.DialogState.Logout(
+                    title = Res.string.feature_settings_logout_title,
+                    message = Res.string.feature_settings_logout_description,
+                ),
+            )
+        }
+    }
+
+    /**
+     * Executes the internal logout logic.
+     *
+     * This function first dismisses any active dialog by setting the dialog state to null.
+     * It then triggers the actual logout operation on the `userDataRepository`. This includes
+     * clearing user-specific data and tokens from the repository, which is a critical
+     * step in securely logging out the user.
+     *
+     * The commented-out code `userDataRepository.logout(...)` represents the intended
+     * functionality to be implemented. The `reason` parameter provides context for the logout event.
+     */
+    private fun handleInternalLogOut() {
+        mutableStateFlow.update {
+            it.copy(dialogState = null)
+        }
+
         viewModelScope.launch {
-            userPreferencesRepositoryImpl.logOut()
+            userDataRepositoryImpl.logOut()
         }
     }
 
@@ -239,7 +270,10 @@ internal data class SettingsState(
         data object Loading : DialogState
 
         /** Represents a logout dialog. */
-        data object Logout : DialogState
+        data class Logout(
+            val title: StringResource,
+            val message: StringResource,
+        ) : DialogState
     }
 }